Mr. Peter Main reports
QUARTERLY ACTIVITIES REPORT TO 31ST MARCH 2017
Rizal Resources Corp. has provided the following update to shareholders on its March quarter 2017 results.
During the first three months of 2017, the team pushed hard to realize the project production
plan, while continuing efforts to raise the remaining capital needed to finance the project through its
commissioning and ramp-up phase.
Since the beginning of 2017, Rizal has managed with a lower cash flow position than budgeted, which
consequentially slowed the advance of the project. Despite this, Rizal has managed to advance the
project toward production. Some key events and achievements are:
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On May 9, 2017, President Rodrigo Duterte appointed Roy A. Cimatu to replace Gina
Lopez as the Secretary of the DENR (Department of Environment and Natural Resources). This action followed Ms. Lopez's appointment being
rejected by the Congressional Commission of Appointments on May 4, 2017.
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During January, 2017, the company engaged Australian mining consultant Premium Mining
Personnel (PMP) to provide advice and training to the local contractors on mine development
and production. The main objective for hiring PMP was to lift the production rates and improve
the safety and operating standards of the mine.
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As at the end of the March quarter, development of the new Minion decline has achieved
a total driven distance of 1,045 metres. This includes total decline, crosscuts and drive
development of 437 metres, 180 metres and 250 metres, respectively. Total decline depth to
date is 50 metres below the access portal entrance.
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In the process of development to date in fiscal 2017, a total of 6,367 tonnes of mineralized
material from drive development and stoping have been brought to surface and delivered to the
mill. This is the primary source material being treated during the mill commissioning phase.
The T'boli plant was recommissioned in February, 2017, and a total of 3,587 tonnes of
mineralized material were treated during the March quarter. The rate of commissioning was
slowed due to some mechanical issues in the crushing and grinding circuit. By the end of the
March quarter, most of those issues had been resolved. As of the end of the March quarter,
gold produced was 18.16 ounces; by the end of April, the plant had produced a total of 182 ounces.
Plant maintenance was planned for May to replace ball mill liners and install a new primary
crusher. The planned maintenance was completed successfully and production restarted on
May 21.
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Continuing slow rates of advance from contractors continue to be an issue; however, there has
been some improvement since the appointment of PMP mining consultants.
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The key focus in the short term is to access remnant material in the upper level of the mine
left behind by previous small-scale miners, with the objective of increasing gold production.
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The plan for the remainder of May and the month of June is to operate the plant at its design
rate of 200 tonnes per day (70,000 tonnes per year). However, grade estimation is difficult at this stage due to the unknown
quantity of higher-grade material that may have been previously mined.
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Rizal is currently preparing a preliminary economic assessment (PEA) for the T'Boli mine.
A detailed budget and schedule are being prepared for the PEA, and Rizal will announce the study
program and timing as soon as possible.
The company also announces that, pursuant to its stock option plan, it has granted
5.75 million stock options at a price of five cents per common share to directors and officers of the
company. The option grants will vest immediately and, per the company's stock option plan,
the options granted are exercisable until May 25, 2022. The grant of the options is subject to the
approval of the TSX Venture Exchange.
We seek Safe Harbor.
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